Positive economic news out of Canada yesterday and China overnight has sparked a big surge in CAD, AUD and NZD which are up around 1.0%-1.5% since lunchtime yesterday. Traders have reacted positively to the news that Chinese flash manufacturing climbed back above 50 into expansion territory. Meanwhile Bank of Canada Governor Poloz’s refusal to hit the panic button instead downplaying the potential for an additional interest rate cut sparked a big positive reversal for CAD which had apparently priced in at least one more cut. Overall the sense from comments out of central bankers in the UK, US, and Canada was one of recognition that the oil price crash may have a downward impact on inflation and economies in the short term but also that economies and inflation may bounce back even stronger over the longer term. Gold is also picking up today rising up off the $1,200 level. Greece related speculation appears to have subsided for now. Recall that over the last few years, gold had basically tracked the ECB balance sheet up and down. Today’s gains may be related to focus turning back to the ECB’s QE stimulus program which is expected to start as soon as next week. Indices in Europe and the US are trading slightly lower this morning, digesting recent gains and looking for new catalysts for action. There are a lot of earnings and other corporate reports out in both the US and Canada today so we may see more of a focus on individual stock action. Corporate News Royal Bank of Canada $1.65 vs street $1.58, 2.7% dividend increase National Bank $1.14 vs street $1.12 Magna International $2.44 vs street $2.25, 16% dividend increase, 2 for 1 stock split, cuts 2015 sales guidance to $33.1B - $34.8B from $34.4B - $36.1B EnCana $0.05 vs street $0.19, cuts 2015 capital budget by $0.7B to $2.0-$2.2B. Hudson’s Bay Co. entering into a joint venture with Simon Properties. To contribute properties worth $2.1B to the venture in a sale and leaseback deal. Will shunt $750M in debt to venture and is to get an 80% stake eventually. Sears Canada sales $972M vs year ago $1,118M, same store sales (9.1%) TransCanada President Obama vetoed the Keystone XL pipeline bill as expected First Solar $1.89 vs street $0.76, sales $1.0B below street $1.28B, guides EPS to ($0.25) –($0.35) vs street $0.78, guides next Q sales to $550-650M vs street $860M Target $1.50 above $1.43-$1.47 guidance Lowes $0.46 vs street $0.43 Hewlett Packard $0.92 vs street $0.91, cut Oct 2015 year guidance to $3.53-$3.73 from $3.83-$4.03 blaming the higher USD Economic News Economic reports released overnight and this morning include: Australia wage inflation 2.5% as expected China flash manufacturing PMI 50.1 vs street 49.5 Norway unemployment rate 3.7% as expected Norway consumer confidence 7.4 vs street 16.5 Economic reports due later today include: 10:00 am EST More FOMC Yellen testimony and questions 10:00 am EST US new home sales street 470K 10:30 am EST US crude oil inventories street 4.0 mmbbls 11:30 am EST ECB Draghi testimony